Clearly, the green bond idea has merit. So much so that the World Bank launched its first green bond back in November with Scandinavian bank SEB. “Tackling climate change is going to take immense resources that will only come from a well-orchestrated flow of public and private finance,” said Robert Zoellick, president of the World Bank Group. “This transaction is an important early effort to show one way in which this can be done. We hope it demonstrates that private citizens can safely and profitably invest their savings today while also helping provide a better world for their children.”

The original issue of the green bond was about $350 million (Canadian), or 2.325 Swedish kronor, but high investor interest led the World Bank to increase the issue to $400 million, or 2.7 SEK. The six-year bond earns 3.25 per cent annually.

I’m sure there are many Canadians and Americans who would be happy, during these turbulent economic times, to park their money in a green bond knowing that the funds generated are being used to put more green energy and infrastructure in place. Ontario, or the Canadian government, should follow the example of the World Bank and issue its own bonds for this purpose — the sooner the better.

NOTE: For a look at recent efforts to introduce a green bond in Canada, check out this previous post.